Business Loan

Payday loans in essence are actually be a very good idea for people who desperately need a loan just before they are due to be paid. The problem with these loans is that lenders are not satisfied with a small interest rate but are adding on huge percentages to the small loans. These interest rates or loan fees as they are called are way too high in proportion to the small loan.

People who cannot work with their money and go broke a few days before they get paid are the ones that are suffering under this system of lending. If would be better for them if they rather learned to budget with their money so that it lasted as long as the month did.

It is a wonder that many of these countries where these loans are so popular are allowing this sort of loan practice to take place. These high interest rates should be made illegal as many innocent people are getting into debt through them. Many borrowers get so deep into debt through these loans that they have to file for bankruptcy as they have no other way out.

There are some lenders that call these loans the post dated check loans. The borrower is told that by giving the lenders a post dated check for the date when they will be receiving their next salary check they can immediately have access to cash. The check will be made out for the amount of the loan plus the high interest rate. On the specific pay day the check will be deposited in your banking account by the lender. If you do not have sufficient funds in the bank to cover the check, it will bounce and you will be liable for bank charges as well.